Musk is paying a combined 53% between Federal and State tax in 2021.
Not saying I agree with dimwits, but is that the before his lawyers and accounts find ways chop the number down figure, or what he actually paid?
Sure, back in the fifties, the nominal top federal income tax rate was 90% and it's about 40% now, but is there even one super wealthy person who actually paid/pays anything like those rates? If so, they’re getting lousy tax advice.
Supposedly he is actually paying $11 billion in tax.
Back in the 1950s rich people didn't pay those top rates either.
You can still find bricked up windows in the UK that were done to avoid window taxes in the 1700s.
People who have wealth have always taken steps to prevent or reduce the amount of taxes paid.
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Actually that is not fully accurate. Yes the top federal income tax rate was that but it was not applied in the same way. The tax base was different and the rate only kicked in after a certain amount (like $200K).
Today any tax bracket kicks in from the first dollar.
So once again, people are misled.
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I should have said marginal top rate.
After deductions. Standard deduction for most people, but lots of itemized deductions for high-income folks who have competent tax advisors.
The effective tax rate for the top 1% is within 3% of the top effective tax rate that they've ever paid historically, FYI.
The rich pay almost as much in taxes as they ever have, and yet people are stupid enough to think that they aren't paying anything.
The only real tax loophole that is preventing some very wealthy people from paying a lot in taxes is carried interest, and that only applies to a minority of workers in private equity funds.